More than 25,000 consumers paid Zurixx for coaching endorsed by TV real estate reality-show stars in a case officials hope “is a warning to others.”
August 1, 2024
3 minutes
With changes to commissions practices just weeks away, the National Association of Realtors has rolled out additional resources to help real estate agents and consumers better understand what's next.
The new documents, videos and slides focus on what homebuyers and sellers should expect after the Aug. 17 deadline — along with tips for brokers and agents on how to help their clients understand these changes.
Specific practice changes taking effect in August include the mandatory use of buyer agent agreements and the removal of offers of compensation from the MLS.
Key points for buyers: In explaining how the settlement affects buyers, NAR emphasizes that buyers should make sure they understand the content of any agreements — particularly the information about their agent's compensation expectations — before signing.
NAR is also insisting that buyers should sign an agreement before they do any form of touring with an agent, whether it is an in-person or virtual home tour.
Checks totalling more than $12 million are being sent out to consumers that were caught up in an alleged real estate coaching scheme.
The Federal Trade Commission is sending refunds to thousands of consumers who paid Zurixx, LLC for a real estate investment program the government says made empty promises about earning profits from flipping houses.
Suit details and celebrity connections: The Utah Department of Commerce Division of Consumer Protection and the FTC sued Zurixx and its owners, Christopher Cannon, James Carlson and Jeffrey Spangler in September 2019.
According to a FTC news release, the agencies alleged that the owners operated a real estate investment coaching business that sold live seminars and telephone coaching using false earnings claims. They were able to convince consumers to pay thousands of dollars to flip homes using the Zurixx system. The company also used endorsem*nts from real estate TV show stars to attract consumers.
The defendants agreed to a settlement in February 2022. Along with paying more than $12 million, they are permanently banned from marketing or selling any real estate or business coaching programs.
"Many victims will finally be getting some justice," said Utah Attorney General Sean Reyes in a news release. "Removing these actors permanently from the coaching space is a significant win for Utah. We hope this serves as a warning to others who might consider setting up similar programs based on false earnings claims."
Refund details: The FTC is sending checks to 25,563 consumers. Details about FTC refunds can be found on its website.
Write to Dave Gallagher.
